In a significant strategic move, Mazagon Dock Shipbuilders Ltd (MDL) has acquired a 51.3% stake in Colombo Dockyard PLC (CDPLC), Sri Lanka’s largest shipbuilding and repair facility, for $52.96 million (₹441 crore). This marks a major overseas expansion for the Indian defence PSU and a calculated geopolitical counter to growing Chinese influence in the region.
The acquisition makes MDL the controlling shareholder in Colombo Dockyard, which was previously majority owned by Japan’s Onomichi Dockyard. The deal is seen as a part of India’s broader effort to strengthen its maritime presence in the Indian Ocean and build defence partnerships with key neighbours like Sri Lanka. Located in close proximity to key global shipping lanes, Colombo Dockyard holds strategic value for both commercial and naval activities. The yard specializes in building offshore support vessels, patrol boats, and conducting ship repairs making it a natural extension of MDL’s defence and commercial shipbuilding portfolio.
MDL’s move comes at a time when China’s footprint in Sri Lanka’s ports and infrastructure has raised security concerns in India. This acquisition aligns with New Delhi’s broader Indo-Pacific vision and maritime cooperation under SAGAR (Security and Growth for All in the Region). Analysts view the deal as not just a commercial expansion, but a strategic play to secure influence in the region and offer alternatives to China-backed entities. It also opens up new revenue opportunities for MDL in servicing foreign naval vessels and expanding its export footprint.
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